Miggy Co. projects the following monthly revenues for next year: 100,000 500,000 452,000 450,000 557,000 300,000 January February March July August September October 250,000 275,000 300,000 350,000 400,000 525,000 April May November June December Miggy's terms are net 30 days. The company typically receives payment on 80% of sales the month following the sale and 17% is collected two months after the sale. Approximately 3% of sales are deemed bad debt. What amount represents the expected cash collection in the second calendar quarter of next year? a. 1,405,540 b. 1,293,630 c. 1,320,540 d. 1,234,250

Miggy Co. projects the following monthly revenues for next year: 100,000 500,000 452,000 450,000 557,000 300,000 January February March July August September October 250,000 275,000 300,000 350,000 400,000 525,000 April May November June December Miggy's terms are net 30 days. The company typically receives payment on 80% of sales the month following the sale and 17% is collected two months after the sale. Approximately 3% of sales are deemed bad debt. What amount represents the expected cash collection in the second calendar quarter of next year? a. 1,405,540 b. 1,293,630 c. 1,320,540 d. 1,234,250

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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